Securing Contracts in a Virtual World

ABSTRACT

The disclosure provides novel video game methods and systems for enforcing contracts within video game environments. Methods and systems of the invention include virtual and real world penalties and remedies for entities that breach contracts or other obligations undertaken in the virtual world.

PRIORITY CLAIM

The following application is a continuation in part of U.S. patentapplication Ser. No. 11/279,991, “Securing Virtual Contracts withCredit” filed Apr. 17, 2006, which is a continuation in part of U.S.patent application Ser. No. 11/355,232, “Online Game that FacilitatesBinding Contracts Between Player Characters” Filed Feb. 14, 2006, whichclaims priority to U.S. Provisional Application Ser. No. 60/727,121“Methods, Processes, and System to Enhance a Player Experience of aVideo Game” filed Oct. 14, 2005. Each of which is hereby incorporated byreference.

BACKGROUND

Video games which are accessible to multiple players via a server orpeer to peer network are well known. For example, hundreds of thousandsof players access games known as massive multi-player online games(MMOGs) and massive multi-player online role playing games (MMORPGs).Players of these games customarily access a game repeatedly (fordurations typically ranging from a few minutes to several days) over agiven period of time, which may be days, weeks, months or even years.The games are often constructed such that players pay a periodicsubscription price (e.g., $15 per month) rather than, or in addition to,paying a one time purchase price for the game. Often, though notnecessarily, these games have no ultimate “winner” or “winning goal,”but instead attempt to create an enjoyable playing environment and astrong player community.

It would be advantageous to provide improved methods and apparatus forincreasing the enjoyment and/or longevity of video games including, butnot necessarily limited to MMOGs and MMORPGs.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a block diagram depicting a network according to an embodimentof the present disclosure.

FIG. 2 is a block diagram depicting a system 100 according to oneembodiment of the present invention.

FIG. 3 is a block diagram depicting a system 200 according to oneembodiment of the present invention.

FIG. 4 is a block diagram depicting a system 300 according to oneembodiment of the present invention.

FIG. 5 is an embodiment of a method of securing a contract.

FIG. 6 is a block diagram depicting a system 400 according to oneembodiment of the present invention.

DETAILED DESCRIPTION DEFINITIONS

Unless stated to the contrary, for the purposes of the presentdisclosure, the following terms shall have the following definitions:

Credit Card—a credit instrument issued by a real or virtual worldinstitution to a player that allows the player to make purchases byproviding an account identifier (e.g. a credit card number) rather thancash or other currency. An example is a credit card like those issued byVisa, MasterCard, or American Express. For the purposes of the presentdisclosure, the term “Credit card” is intended in a very broad sense andis not limited to those situations in which a player's purchases aremade on credit (i.e. where payments for those purchases is not due untila later time) but also includes financial instruments such as debitcards, check cards, lines of credit and the like.

Virtual credit card—a financial instrument issued in a virtualenvironment that acts in the virtual environment for virtual currencythe way a real world credit card acts in the real world for realcurrency.

Real Cash Value—the value in real dollars of the virtual currency. Thisvalue can be determined by multiplying the value of a virtual currencyamount by the current exchange rate to real dollars.

Total virtual obligation amount—the total amount of the virtualfinancial obligation(s) associated with a player character's account.

Virtual Contract—An enforceable agreement between a first playercharacter and either another player character, a game server, or a thirdparty. Some examples of virtual contracts are provided in U.S.Provisional Patent Application Ser. No. 60/652,036, which is herebyincorporated by reference in its entirety for all purposes.

Virtual—shall mean in a video game environment or other intangiblespace.

Virtual World—a world created in an online game such as World ofWarcraft, or a virtual community such as Second Life, Eve or There.com.

Virtual Creditor—shall mean a first player character or other entity whois owed a virtual obligation by a second player character.

Virtual Credit Score—a score given to player characters in a video gamebased on one or more of the following criteria: the virtual assets theypossess, the age of the character account, the type of account, e.g.basic or premium, the available credit line of the credit cardassociated with the account, the existing virtual financial obligationsof the player character account, the player character's payment historyincluding days to pay, amounts overdue or delinquent, and/or the playercharacter's real world credit score, and/or the factors used in the realworld to determine a credit score.

Virtual Financial Account—a virtual account issued to a player characterby a virtual bank, game server or third party where virtual cash can bedeposited and withdrawn.

Virtual Financial Obligation—An agreement by a player character orentity to pay one or more game attributes to another player character,entity or game server. This obligation can be a one time payment, ormultiple payment over time. The obligation can specify that payments aredue on virtual or real dates.

Virtual Financial Intermediary—Financial intermediaries are institutionsincluding depository institutions, contractual savings institutions, andinvestment intermediaries which offer financial products and servicesfor use within the virtual environment. The various financialintermediaries available in the virtual environment may each servedifferent or overlapping purposes and provide means for using, saving,borrowing and transferring currency.

Virtual Financial Obligation Value—the in game value of the obligation.For virtual cash the value may be stated as a virtual and/or real cashamount. For other game attributes, the value can be determined bygenerating a virtual cash market value for the item based on the currentvalue in an online marketplace or exchange. The value of the obligationmay be fixed or variable and may also be set as a condition of theplayer contract and/or by the game server or other entity.

Billing Information—shall mean any information pertaining to billing aplayer for playing a game, accessing a game, purchasing goods orservices, or any other reasons. Billing information may include suchreal world information as a billing address, credit card account number,bank account number, pay pal account number or other paymentfacilitator, or the account number of any other financial entityproviding a real world credit line or any other payment-relatedinformation.

Character or “player character”—a persona created and controlled by aplayer in a video game.

Avatar—the virtual representation of a player character.

Character Account—an account that tracks character attributes.

Character Attribute—any quality, trait, feature or characteristic aparticular Character can have that is stored in the correspondingCharacter Account. Character Attributes may include, but are not belimited to:

-   -   1. A character score    -   2. A virtual object    -   3. The physical appearance of a character    -   4. An emblem or mark    -   5. A synthetic voice    -   6. Virtual currency    -   7. Virtual help points or credits    -   8. The ability to join groups of other players at a later time    -   9. A score for subsequent matching of later game parameters    -   10. A relationship with another character    -   11. A genetic profile or makeup    -   12. A skill or skill level    -   13. A ranking

Character Life—a fixed or variable, finite or infinite period of virtualor real world time that a player character can exist in a gameenvironment.

Character Skills—game attributes inherent in or acquired by a playercharacter during game play such as, but not limited to: the ability tocast (certain) spells, foretell the future, read minds, use (certain)weapons, cook, hunt, find herbs, assemble herbs into potions, mine,assemble objects into other objects, fly, and/or enchant other playercharacters.

Computer Generated (CGC) or Non-Player (NPC) Character—any characterthat is controlled by the game system and/or a computer program and/orrules established by the game system and/or a player and not by a playeron a continuous basis.

Game performance parameter—any aspect of a Video Game by which a playercharacter's performance can be measured. Game Parameters shall include,but not be limited to:

-   -   1. Completing all or part of a mission    -   2. Playing for a certain period of time    -   3. Winning a match against another player character or computer        generated character    -   4. Reaching a certain level or score    -   5. using or obtaining an ability or technology    -   6. kill/death ratios    -   7. obtaining, creating or modifying an object    -   8. solving a puzzle    -   9. accuracy with weapons    -   10. effective use of the proper weapon    -   11. killing a certain character/creature    -   12. getting through or to a certain geographic area    -   13. decreasing or increasing Karma Points    -   14. getting, buying, exchanging or learning a new skill or        player attribute    -   15. having a child    -   16. getting married    -   17. obtaining, buying, trading, producing or developing raw        materials    -   18. producing goods or services    -   19. earning income    -   20. earning a higher rank in an army    -   21. winning an election among two or more player characters    -   22. achieving deity or other status    -   23. improving player character status or caste    -   24. assisting other player characters with any of the above    -   25. speed of accomplishing or changing the rate or trends of any        or all of the above.

In-game Marketplace—shall mean a virtual environment where Characterscan exchange items, attributes, or any other exchangeable game element.

Novice Player—shall mean a player that is identified as requiring thehelp of an expert to complete a Game Parameter.

Player—shall mean an individual who can register an account with a VideoGame Central Server or within a peer-to-peer network and createCharacters that can interact with other Characters in a VirtualEnvironment, and/or that can authorize a NPC to act on the player'sbehalf.

Player Account—shall mean an account on the Video Game Central Server orwithin a peer-to-peer network that contains a Player profile includingpersonal, billing, and character account information.

Player Attribute—shall mean any attribute that can be applied to aplayer account. Player Attributes shall include, but not be limited to:

-   -   1. Real Currency.    -   2. Discount of monthly fees for playing game.    -   3. Monthly fee for playing a game.    -   4. Interest rates for use of or borrowing real or virtual cash        amounts.    -   5. Global character attribute settings for all characters        created by player across multiple games.    -   6. Rewards for encouraging another player to signup to play.

Player to Player Contract—a real and/or virtual but binding contractbetween player characters that allows the players to provide or exchangegame attributes to one another. Once a player-to-player contract isestablished, the game server or peer-to-peer network automaticallydistributes acquired game attributes between the player characters basedon the contract conditions.

Video Game—a game played on a Video Game Consul that may or may not benetworked to a Video Game Central Server or within a peer-to-peernetwork.

Video Game Consul—a device comprising a CPU, memory and optionalpermanent storage residing at a player location that can allow for theplaying of video games. Examples include, home PCs, Microsoft Xbox, andSony Playstation.

Video Game Central Server—a CPU, memory and permanent or temporarystorage that is connected to multiple Video Game Consuls that allows forMassive Multi Player Online Video Games to be played.

“Game Environment”—a particular level or area within a virtual world.Each game environment may have its own rules, regulation, currency,government, managers, etc. Game environments may exist within other gameenvironments.

The term “variation” of an invention means an embodiment of theinvention, unless expressly specified otherwise.

A reference to “another embodiment” in describing an embodiment does notimply that the referenced embodiment is mutually exclusive with anotherembodiment (e.g., an embodiment described before the referencedembodiment), unless expressly specified otherwise.

The terms “including”, “comprising” and variations thereof mean“including but not limited to”, unless expressly specified otherwise.

The term “consisting of” and variations thereof mean “including andlimited to”, unless expressly specified otherwise.

The terms “a”, “an” and “the” mean “one or more”, unless expresslyspecified otherwise.

The term “plurality” means “two or more”, unless expressly specifiedotherwise.

The term “herein” means “in this patent application, including anythingwhich may be incorporated by reference”, unless expressly specifiedotherwise.

The phrase “at least one of”, when such phrase modifies a plurality ofthings (such as an enumerated list of things) means any combination ofone or more of those things, unless expressly specified otherwise. Forexample, the phrase “at least one of a widget, a car and a wheel” meanseither (i) a widget, (ii) a car, (iii) a wheel, (iv) a widget and a car,(v) a widget and a wheel, (vi) a car and a wheel, or (vii) a widget, acar and a wheel.

The phrase “based on” does not mean “based only on”, unless expresslyspecified otherwise. In other words, the phrase “based on” describesboth “based only on” and “based at least on”.

The term “represent” and like terms are not exclusive, unless expresslyspecified otherwise. For example, the term “represents” does not mean“represents only”, unless expressly specified otherwise. In other words,the phrase “the data represents a credit card number” describes both“the data represents only a credit card number” and “the data representsa credit card number and the data also represents something else”.

The term “whereby” is used herein only to precede a clause or other setof words that express only the intended result, objective or consequenceof something that is previously and explicitly recited. Thus, when theterm “whereby” is used in a claim, the clause or other words that theterm “whereby” modifies do not establish specific further limitations ofthe claim or otherwise restricts the meaning or scope of the claim.

The term “e.g.” and like terms means “for example”, and thus does notlimit the term or phrase it explains. For example, in the sentence “thecomputer sends data (e.g., instructions, a data structure) over theInternet”, the term “e.g.” explains that “instructions” are an exampleof “data” that the computer may send over the Internet, and alsoexplains that “a data structure” is an example of “data” that thecomputer may send over the Internet. However, both “instructions” and “adata structure” are merely examples of “data”, and other things besides“instructions” and “a data structure” can be “data”.

The term “determining” and grammatical variants thereof (e.g., todetermine a price, determining a value, determine an object which meetsa certain criterion) is used in an extremely broad sense. The term“determining” encompasses a wide variety of actions and therefore“determining” can include calculating, computing, processing, deriving,investigating, looking up (e.g., looking up in a table, a database oranother data structure), ascertaining and the like. Also, “determining”can include receiving (e.g., receiving information), accessing (e.g.,accessing data in a memory) and the like. Also, “determining” caninclude resolving, selecting, choosing, establishing, and the like. Itdoes not imply certainty or absolute precision, and does not imply thatmathematical processing, numerical methods or an algorithm process beused. Therefore “determining” can include estimating, predicting,guessing and the like.

It will be readily apparent to one of ordinary skill in the art that thevarious processes described herein may be implemented by, e.g.,appropriately programmed general purpose computers and computingdevices. Typically a processor (e.g., one or more microprocessors, oneor more microcontrollers, one or more digital signal processors) willreceive instructions (e.g., from a memory or like device), and executethose instructions, thereby performing one or more processes defined bythose instructions.

A “processor” means one or more microprocessors, central processingunits (CPUs), computing devices, microcontrollers, digital signalprocessors, or like devices or any combination thereof. Thus adescription of a process is likewise a description of an apparatus forperforming the process. The apparatus can include, e.g., a processor andthose input devices and output devices that are appropriate to performthe method. Further, programs that implement such methods (as well asother types of data) may be stored and transmitted using a variety ofmedia (e.g., computer readable media) in a number of manners. In someembodiments, hard-wired circuitry or custom hardware may be used inplace of, or in combination with, some or all of the softwareinstructions that can implement the processes of various embodiments.Thus, various combinations of hardware and software may be used insteadof software only.

The term “computer-readable medium” refers to any medium thatparticipates in providing data (e.g., instructions, data structures)which may be read by a computer, a processor or a like device. Such amedium may take many forms, including but not limited to, non-volatilemedia, volatile media, and transmission media. Non-volatile mediainclude, for example, optical or magnetic disks and other persistentmemory. Volatile media include dynamic random access memory (DRAM),which typically constitutes the main memory. Transmission media includecoaxial cables, copper wire and fiber optics, including the wires thatcomprise a system bus coupled to the processor. Transmission media mayinclude or convey acoustic waves, light waves and electromagneticemissions, such as those generated during radio frequency (RF) andinfrared (IR) data communications. Common forms of computer-readablemedia include, for example, a floppy disk, a flexible disk, hard disk,magnetic tape, any other magnetic medium, a CD-ROM, DVD, any otheroptical medium, punch cards, paper tape, any other physical medium withpatterns of holes, a RAM, a PROM, an EPROM, a FLASH-EEPROM, any othermemory chip or cartridge, a carrier wave as described hereinafter, orany other medium from which a computer can read.

Various forms of computer readable media may be involved in carryingdata (e.g. sequences of instructions) to a processor. For example, datamay be (i) delivered from RAM to a processor; (ii) carried over awireless transmission medium; (iii) formatted and/or transmittedaccording to numerous formats, standards or protocols, such as Ethernet(or IEEE 802.3), SAP, ATP, Bluetooth™, and TCP/IP, TDMA, CDMA, and 3G;and/or (iv) encrypted to ensure privacy or prevent fraud in any of avariety of ways well known in the art.

Thus a description of a process is likewise a description of acomputer-readable medium storing a program for performing the process.The computer-readable medium can store (in any appropriate format) thoseprogram elements which are appropriate to perform the method.

Just as the description of various steps in a process does not indicatethat all the described steps are required, embodiments of an apparatusinclude a computer/computing device operable to perform some (but notnecessarily all) of the described process.

Likewise, just as the description of various steps in a process does notindicate that all the described steps are required, embodiments of acomputer-readable medium storing a program or data structure include acomputer-readable medium storing a program that, when executed, cancause a processor to perform some (but not necessarily all) of thedescribed process.

Where databases are described, it will be understood by one of ordinaryskill in the art that (i) alternative database structures to thosedescribed may be readily employed, and (ii) other memory structuresbesides databases may be readily employed. Any illustrations ordescriptions of any sample databases presented herein are illustrativearrangements for stored representations of information. Any number ofother arrangements may be employed besides those suggested by, e.g.,tables illustrated in drawings or elsewhere. Similarly, any illustratedentries of the databases represent exemplary information only; one ofordinary skill in the art will understand that the number and content ofthe entries can be different from those described herein. Further,despite any depiction of the databases as tables, other formats(including relational databases, object-based models and/or distributeddatabases) are well known and could be used to store and manipulate thedata types described herein. Likewise, object methods or behaviors of adatabase can be used to implement various processes, such as thedescribed herein. In addition, the databases may, in a known manner, bestored locally or remotely from any device(s) which access data in thedatabase.

Various embodiments can be configured to work in a network environmentincluding a computer that is in communication (e.g., via acommunications network) with one or more devices. The computer maycommunicate with the devices directly or indirectly, via any wired orwireless medium (e.g. the Internet, LAN, WAN or Ethernet, Token Ring, atelephone line, a cable line, a radio channel, an optical communicationsline, commercial on-line service providers, bulletin board systems, asatellite communications link, or a combination of any of the above).Each of the devices may themselves comprise computers or other computingdevices, such as those based on the Intel® Pentium® or Centrino™processor, that are adapted to communicate with the computer. Any numberand type of devices may be in communication with the computer.

In an embodiment, a server computer or centralized authority may not benecessary or desirable. For example, the present invention may, in anembodiment, be practiced on one or more devices without a centralauthority. In such an embodiment, any functions described herein asperformed by the server computer or data described as stored on theserver computer may instead be performed by or stored on one or moresuch devices.

DESCRIPTION

Massive multi player online games (MMOGs) or massive multi-playerrole-playing games (MMORPGs) are computer game which are capable ofsupporting hundreds, thousands, or millions of players simultaneously.Typically, this type of game is played in a giant persistent world wherethe game continues playing regardless of whether or not real players arelogged in. Players commonly access these games through a network such asthe Internet, and may or may not be required to purchase additionalsoftware or hardware in order to play the game. Such networks allow forpeople all over the world to participate and interact with each other ina virtual environment. The present disclosure provides systems andmethods which contribute to the evolution and longevity of such a game.

The herein described aspects and drawings illustrate componentscontained within, or connected with other components that permit play inthe virtual environment. It is to be understood that such depicteddesigns are merely exemplary and that many other designs may beimplemented to achieve the same functionality. Any arrangement ofcomponents to achieve the same functionality is effectively associatedsuch that the desired functionality is achieved. FIG. 1 provides anexemplary network which may be used to support a virtual environment.

Referring to FIG. 1, a network 10 according to one embodiment includes acentral server 20 in communication with a plurality of video gameplaying units 18. Those of ordinary skill in the art will appreciatethat any number of video game playing units may be in communication withthe central server. Typically, the number of video game playing unitschanges at various times as players join games and as players stopplaying games. Similarly, more than one server may operate to coordinatethe activities of the video game playing units, as is well known in theart.

Central server 20 may comprise any computing device (e.g., one or morecomputers) capable of communicating with other computing devices. Theserver 20 typically comprises a processor which is in communication witha storage device, such as an appropriate combination of RAM, ROM, harddisk, and other well known storage media. Central server 20 may compriseone or more personal computers, web servers, dedicated game servers,video game consoles, any combination of the foregoing, or the like.

Each video game device 18 may comprise any device capable ofcommunicating with central server 20, providing video game informationto a player, and transmitting the player's desired actions to thecentral server. Each video game device typically comprises a processorwhich is in communication with a storage device, such as an appropriatecombination of RAM, ROM, hard disk, and other well known storage media.Suitable video game devices include, but are not limited to, personalcomputers, video game consoles, mobile phones, and personal dataassistants (PDAs).

Some or all of video game 17 can be stored on central server 20.Alternatively, some or all of video game 17 may be stored on theindividual video game devices 18. Typically, the video game devices areable to communicate with one another. Such communication may or may notbe facilitated by central server 20. Accordingly, a player 19 aaccessing video game 17 via game device 18 a may be able to play with aplayer 19 b accessing video game 17 via game device 18 b. As shown, itmay be possible for multiple players (e.g. 19 c, 19 d) to access centralserver 20 via the same game device (e.g. 18 c).

Regardless of whether video game 17 is stored on central server 20 orvideo game devices 18, server 20 is typically configured to facilitateplay of the game between multiple game players.

Those having skill in the art will recognize that there is littledistinction between hardware and software implementations. The use ofhardware or software is generally a choice of convenience or designbased on the relative importance of speed, accuracy, flexibility andpredictability. There are therefore various vehicles by which processesand/or systems described herein can be effected (e.g., hardware,software, and/or firmware) and that the preferred vehicle will vary withthe context in which the technologies are deployed.

At least a portion of the devices and/or processes described herein canbe integrated into a data processing system with a reasonable amount ofexperimentation. Those having skill in the art will recognize that atypical data processing system generally includes one or more of asystem unit housing, a video display device, memory, processors,operating systems, drivers, graphical user interfaces, and applicationprograms, interaction devices such as a touch pad or screen, and/orcontrol systems including feedback loops and control motors. A typicaldata processing system may be implemented utilizing any suitablecommercially available components to create the gaming environmentdescribed herein.

While virtual environments as previously described allow forinteractions between players, the amount and depth of interaction may belimited by the parameters of the game. For example, most virtualenvironments lack methods of enforcement for virtual contracts. Thislack of enforcement makes players reluctant to enter into transactionsthat do not have immediate results, decreasing the depth andsophistication of play available.

Various embodiments of the invention address this issue by providing ameans for enforcing contracts and providing both virtual and real worldconsequences for characters and players who fail to meet the terms ofcontracts or other obligations to which they are a party. Such a systemallows for the development of the game and widens the opportunitiesavailable to players, increasing the enjoyment of the players and thedepth of play available.

A contract is a binding agreement between two or more parties forperforming, or refraining from performing, some specified virtual act(s)in exchange for lawful consideration. Contracts in a virtual environmentmay be entered into for a variety of reasons, for example, to borrowvirtual money; to rent virtual items; to receive virtual financing; tocreate virtual items; for futures in virtual goods or services; forassistance with solving a game mission; for assistance with completing agame project; to form virtual relationships; to form virtualpartnerships; to try to prevent another player character from solving agame mission or completing some aspect of the game; for the sale andpurchase of virtual goods and services; for virtual insurance; forvirtual transactions such as shipping contracts; for use of virtualitems for example in per use fees, taxes, licenses, rentals etc.; tosettle disputes in the virtual environment; to abide by the rules andregulations of the game; or for any of a myriad of other reasonsincluding, but not necessarily limited to those reasons that contractsare generally entered into in the real world.

A contract may be made between any two or more entities in the virtualenvironment. For example, a party to a contract may be or include aplayer, a character, a game environment, a game server, or anycombination thereof. In some embodiments, there may be multiplecharacters or non-character entities such as game environments on eachside of the contract. For ease of description, virtual contracts arediscussed throughout the application as occurring between two partiesthough it is understood that each “party” may encompass multipleentities. For further ease of discussion, while various examples ordiscussions may refer to a “character” or “player” being a party in acontract, it should be understood that any suitable entity may be aparty in any type of contract described herein and that no limitation isintended when a particular party is described as being a particular typeof entity.

An exemplary system 100 configured to provide the virtual environmentdescribed above is shown in FIG. 2. As shown, system 100 may include agame server 102, a bank server 104, and a credit card server 106.

Game server 102 may include such programs as contract generation program110, contract enforcement program 112, and asset liquidation andredistribution program 114. Game server 102 may further include avariety of databases such as contract database 116, player database 118,and player character database 120. Bank server 104 may easily be anyother financial intermediary or neutral third party server and mayinclude databases such as escrow account database 130, player database132 and player character database 134. Credit card server 106 mayinclude programs such as lock credit line 142, ping credit line 144,release credit line 146 and databases such as account database 140.

A virtual contract may be generated by any means applicable. In oneembodiment, two or more parties negotiate a virtual contract. In anotherembodiment, two or more parties may select an applicable virtualcontract from a contract database such as contract database 116, andcomplete the necessary information regarding the specifics of thevirtual contract. In yet another embodiment, completed virtual contractsare stored in contract database 116. In a further embodiment, one partymay present a virtual contract for signature to another party. Inanother embodiment, two parties may create a Master Agreement whichgoverns all subsequent interactions of a particular type between thoseparties. Such Master Agreements may be stored, for example, in contractdatabase 116. In still another embodiment, an organization may maintaina Master Agreement to which multiple parties may subscribe withoutalteration. All parties to such a Master Agreement agree to be bound bythe terms of the agreement in their interactions with other signatorieswhich are within the scope of the Master Agreement. Such a MasterAgreement may be stored in contract database 116, or may be maintainedby the governing entity that oversees the agreement. In yet anotherembodiment, a virtual contract may be generated using a contractgeneration program such as contract generation program 110. Such aprogram may generate a virtual contract using some or all of thefollowing steps:

-   -   1. Receive a virtual contract initiation request from a party.    -   2. Determine contract obligations and conditions.    -   3. Output obligations and conditions.    -   4. Receive acceptance of obligations and conditions.    -   5. Retrieve or receive collateral such as credit line associated        with party.    -   6. Activate and store virtual contract along with obligations        and conditions.    -   7. Transfer any assets as required by obligations and        conditions.

Virtual contracts may be tailored to meet specific conditions, forexample loans may include loan amounts, terms, interest, and limits onuse. A virtual contract to receive a dividend, such as through a stock,may include information on the shares held and the value of the shares.A virtual contract to receive an interest payment, such as through abond, may include information on the terms of the bond. A virtualfinancing contract may include the virtual cash payment amount, thenumber of payments and the dates of each payment. A virtual purchasingcontract may include the transfer of the item purchased. Virtualcontracts to create items may include costs, resources, blueprints, dateof delivery, levels of quality, skills required, etc. Virtual futurescontracts may include information such as the specified later date andprice and the quantity of goods to be purchased. Virtual servicecontracts, such as help with solving a mission, may include suchinformation as a description of the mission, the date by which themission must be completed and any penalties that may be assessed if themission if it is not completed. Virtual insurance contracts may includea description of the virtual object being insured, an estimated value,premium amounts and dates of payments, and the amount to be paid if theinsurance is claimed. Virtual shipping contracts may include such termsas virtual point of origination, virtual destination, demurrage ratesand delivery date. Virtual use contracts may include the virtual servicesought to be used, the cost of using such a service, and the length oftime for using the service which is being purchased. Virtual bankingcontracts may include agreements to pay a specified interest rate orinterest rate payment schedule in return for a deposit. Virtual taxcontracts may include agreements to pay taxes to a city in order toreceive a benefit such as citizenship.

In one embodiment, virtual contracts are secured. Such security providesa means for enforcing a virtual contract. The security may be providedby financial or non-financial collateral which guarantees that acharacter will abide by the terms of the contract. One, all, or none ofthe characters may be required to provide collateral. The amount of thecollateral may be determined by the parties, may be based on the valueof the contract, i.e. the replacement cost if a party defaults, theamount of payments owed, etc., or may be set by a third party such asthe game server or any combination thereof. In one embodiment therequired collateral is fixed. In another embodiment, the requiredcollateral is a floating amount. For example, the value of a virtualcontract may increase between the time the virtual contract is signedand the time performance is completed in accordance with the varyingvalues of the goods or services that compose the virtual contract. Sucha variance may require that the amount of collateral be adjusted duringthe term of the virtual contract, for example in a marked to marketsituation.

For contracts that do not have a readily identifiable liquidated damageamount, for example barter transactions or service for servicecontracts, a virtual financial value may be determined by the parties,by the server, by an independent third party, or by a combination of anyof these. The virtual financial value may be determined before thecontract formed, at the time the contract is formed, at the time ofbreach, etc. Moreover, such value may be determined periodically or inreal time during the term of the contract.

The collateral may belong to the one of the parties to the virtualcontract, or to a third party who is providing a guarantee for anotherparty, for example as a co-signor on a loan. The collateral may be areal world credit line supported by a real world financial institution,a real world financial security, a real world asset, a virtual financialinstitution, a virtual credit line, a virtual financial security, avirtual property or business, a virtual asset, a real world property, apromise to perform certain services or any combination thereof. Thecollateral may be held in escrow by each party, or may be held in trustby a neutral third party such as a financial intermediary or a holdingcompany.

In one embodiment, the collateral is a real world credit line. Eachparty or member of a party may indicate the amount of collateral in theform of the real world credit line he is willing to allocate against avirtual contract. In another embodiment, a virtual contract may bevalued and each party may be required to secure their portion of thecontract with a real world credit line. Such a real world credit linemay be a credit card, debit card, private or public payment facilitatoraccount (i.e. paypal), brokerage account, equity line, play time card,escrow account, margin account, annuity account or other financialsecurity and/or the financial security of another player characterand/or a non-playing third party, such as a bank, credit institution,credit card company, mutual fund, hedge fund, insurance company, etc. orany combination of these or any other type of real world financialinstrument or institution that provides a credit line or holds orsecures assets for third parties.

According to another embodiment, real world credit lines can be lockedby the bank owner or game server, and/or just periodically “pinged” toensure their validity and that sufficient credit is available tounderwrite the loan. The continuing availability of the real worldcredit line may be determined by any means applicable. According to oneembodiment, Ping Credit Line program 144 may be configured to completesome or all of the following steps:

-   -   1. Determine that a player character has an outstanding virtual        contract.    -   2. Determine real and virtual cash value of contract.    -   3. Retrieve credit card associated with contract.    -   4. Ping credit card for the outstanding real cash value of the        contract.    -   5. If credit equal to contract amount is not available, request        additional collateral.

In the event a credit line securing the virtual contract is cancelled orclosed, the system could receive notification that the credit card orcredit line is no longer valid. Upon notification that a credit line isno longer valid, the bank, system, game owner, server owner, or othercontract holder may require cancellation of the contract, accelerationof the contract, require the player to provide a new credit line,require additional collateral to secure the contract, foreclose on thecontract, secure a secondary line of credit which was previouslyprovided or may be secured from other player characters, notify othercharacters of the opportunity to purchase a contract, foreclose onvirtual assets held by the defaulting character, freeze the virtualaccounts of the character or player, or any combination thereof.

The lock on the real world credit line may be released when the virtualcontract is completed. According to one embodiment, Release Credit Lineprogram 146 may be configured to:

-   -   1. Receive indication that virtual contract has been completed.    -   2. Retrieve credit card associated with virtual contract.    -   3. Notify credit card issuer to release credit line.

In another embodiment, a real or virtual credit line can secure amilestone amount, an otherwise calculated amount, the entire value ofthe contract, or a combination thereof. In calculating the amount to besecured factors such as game growth rates, taxes, inflation and/orexchange rates, credit worthiness of the character or player, riskinessof the contract, the amount of debt the parties to the contract haveoutstanding, or any combination thereof. Such determinations andevaluations may be made by a) the game manufacturer, b) the owner(s) ofthe server(s) upon which the game resides, c) one or more playercharacters, d) market forces, e) negotiation among the affected parties,f) any combination of the above.

According to one embodiment, a credit line is pinged and secured for aperiod of time, such as a few days, and then released. For example, thegame server could ping the credit card every month, freeze the amount ofcredit line equal to the obligation, and if that amount of credit lineis not available, lock the assets secured with the credit line andnotify both parties that the credit line is not adequate to secure theproperty.

In one embodiment, a percentage of the real world credit line(s) may bereleased in proportion to or in some other ratio of the amount of thecontract completed. In this example, the real world credit line held isreduced as the virtual contract proceeds, instead of waiting for theentire virtual contract to be completed, thus freeing real world creditlines for other purposes. Such a release could be managed by any meansavailable. According to one embodiment, Release Credit Line program 146may be configured to:

-   -   1. Receive indication that a contract milestone has been met.    -   2. Retrieve credit card associated with virtual contract.    -   3. Notify credit card issuer to release an equal or other        determined portion of the credit line.        Information regarding the credit lines used to secure a virtual        contract may be stored by any means applicable. In one        embodiment, such information may be stored in Account database        140.

In another embodiment, the amount of a real world credit line to befrozen can be based on the exchange rate of virtual currency for realcurrency. According to one embodiment, the exchange rate could be onefor one. Alternatively, the exchange rate may be based on the exchangerate at the time of the formation of the contract. It may also be basedon the exchange rate at the time the player's credit card or othercredit line is charged. In another embodiment, the exchange rate may beadjustable for the term of the contract. Such adjustments may be basedon inflation, actual exchange rates, market forces or other economicindicators or a combination thereof. The exchange rate may be fixed inthat the rate does not change for the duration of the game or segment ofthe game. Alternatively, the exchange rate may be pegged to a floatingreal world exchange relationship, for example the U.S. dollar/Japaneseyen spot exchange rate, a percentage thereof, a plus or minus adjustmentthereof, some other economic indicator, or a combination thereof. Theexchange rate may also vary depending on the country of origin of theplayer, or may be fixed to a particular real world currency, i.e., allexchange rates are quoted in dollars. In another embodiment, theexchange rate may be floating and determined by market forces such asthe relative demand for virtual currency versus real world currency.Said exchange rates may further be established or determined by anysuitable method including, but not limited to, by a) the gamemanufacturer, b) the owner(s) of the server(s) upon which the gameresides, c) one or more player characters, d) market forces, e)negotiation among the affected parties, f) any combination of the above.The exchange rate may also be composed of any combination of the abovemethods. For example, the exchange rate could be fixed for a certainlength of time and then change to market forces or vice versa.Alternatively, there may be a cap on the amount of fluctuation in theexchange rate during the term of the contract.

In another embodiment, characters could request bids from othercharacters or entities to pay for an item or purchase a contract at somelevel of exchange that differs from the current exchange rate.

In the event of a default, the credit cards or other credit lines usedas collateral may be charged according to any of a number of criteriaincluding, but not limited to, charging all of the credit cards used tosecure the virtual contract in equal percentages until the credit lineis maxed out, and then in an equal percentage on the remaining creditlines until no credit line is available; in an order designated by thevirtual contract, i.e. charge credit card A first up to a fixed amount,then charge credit card B, etc.; or in a ratio specified under thecontract.

In another embodiment, the collateral may be a non-financial asset. Suchan asset includes any item of economic value including, but not limitedto, a virtual object; a virtual skill or attribute; virtual property orbusiness; a real world object or property; a promise to perform certainservices, or any combination thereof. In one embodiment, the collateralmay be a collection of assets held in escrow. In the event of a default,such assets may be sold or otherwise liquidated. In one embodiment, thecharacter retains possession of the assets in escrow, but is preventedby the game from selling or otherwise disposing of or encumbering theassets securing the contract. In another embodiment, no particularassets are set aside, but a character may be prevented from disposing ofhis assets below a minimum amount which would secure his obligations.Records of such holdings may be stored by any means applicable, forexample in escrow account database 130. Information regarding theplayers and characters with assets in escrow and the conditions of theescrow may be stored, for example in player database 132 and playercharacter database 134, respectively.

In a further embodiment, characters with a certain real or virtualcredit score, who have achieved a certain amount of virtual value in agame or have reached a certain level may not be required to providecollateral for a contract. Such “financially secure” characters mayvouch for less financially secure player character by offering theirvirtual value as collateral.

Once a virtual contract is agreed upon and the collateral is secured,the assets which are the subject of the contract may be transferred asdictated by the terms of the contract. Assets to be transferred mayinclude virtual loan amounts, virtual dividends, virtual assets such asa good, or the results of a mission. The transfer may further includefulfillment of the terms of the contract such as the delivery of a good,the construction of a project, the payment of a fee, etc.

For example, the virtual contract could be a loan. A player character orentity may borrow virtual cash from another player character, entity,financial intermediary or the game server. Terms may include an theamount of currency the bank is willing to lend to the character, thetype of collateral the bank will require, the interest rate for theloan, the term of the loan, the payment schedule for the loan, anorigination fee, commitment fee, any additional fees the bank may decideto charge, annual percentage rate, if there will be a balloon payment,due date, grace period, penalties, service charge, transferability,automatic repayment, payment of other obligations, and exchange value.Such a contract could be accomplished using some or all of the followingsteps:

-   -   1. Receive, store, and output and post virtual cash loan request        from a first player character.    -   2. Receive, store, and output response to virtual cash loan        request including obligations and conditions from a second        player character.    -   3. Receive acceptance of obligations and conditions from first        player character.    -   4. Retrieve or receive credit card associated with first player        character.    -   5. Create, activate and store a virtual contract including        obligations, conditions, and credit card.    -   6. Receive virtual cash loan amount from second player        character.    -   7. Issue virtual cash loan amount to first player character.

In another embodiment, the virtual contract could be to receive dividendpayments. Such payments could be made to shareholders in a gameenvironment or other investors. Some types of shares could haveguaranteed dividend or other payments. The payments may be guaranteed bythe owner(s) of the game environment or by a third party.

In another embodiment, the contract could be a virtual finance option. Afinance option may offer a payment schedule and terms of the financingusing some or all of the following steps:

-   -   1. Receive request to purchase an in game item with virtual cash        from a player character.    -   2. Generate and output one or more virtual offers to finance the        item purchase that includes a number of virtual cash payments at        a specified number of time period intervals.    -   3. Receive an acceptance of a finance offer from the player        character.    -   4. Retrieve or receive a credit card associated with the player        character.    -   5. Establish and store financing contract including the virtual        cash payment amount, the number of payments, the dates for each        payment, and the credit card information.    -   6. Output virtual item to player character.        Such an arrangement could occur between players, between        characters, between characters and a game environment, between        players and a game environment, between players and the game,        between characters and the game, or any combination thereof.

In another embodiment, a virtual contract may be entered into for thecreation of a virtual item. A character may contract with a secondcharacter to produce a virtual item according to certain specificationsby a particular date. If the second character does not complete the itemaccording to the requested specifications, or by the specified time,they may be assessed a penalty. Conversely, if the contracting characterdoes not pay for the item, they may be assessed a penalty. For example,such a virtal contract may be executed using some or all of thefollowing steps:

-   -   1. Receive, Store and Output a request to assemble an in-game        item, including at least one of (i) a virtual cash amount, (ii)        a blueprint, (iii) in game natural resources and game items        necessary to assemble the item, (iv) a date/time of expected        delivery, and (v) the agreed upon or expected quality of the        item or its constituent components.    -   2. Determine if parties are qualified to enter into specified        contract.        -   a. Determine if first player character has access to            sufficient collateral or does not need collateral.        -   b. Determine if second player character has appropriate            skills necessary to assemble the item.    -   3. Receive an acceptance of the offer by a second player        character including the price and a time when the item will be        complete.    -   4. Receive or retrieve a credit card associated with the second        player character.    -   5. Store credit card with accepted offer to assemble an in-game        item.

Virtual contracts may include over the counter securities transactions,for example, futures contracts, stocks, bonds, derivatives andcommodities. For example, in a futures contract, a character can agreeto buy or sell a particular amount of a game resource or item at aspecified virtual or real time period. A real cash value is determinedthat is equal to the virtual cash value of the buy or sell offer. If theplayer character is unable to sell or purchase the item at the specifiedtime, they may be assessed a penalty on all or a portion of the realcash value of the contract or any combination thereof. Such transactionsmay be accomplished using some or all of the following steps:

-   -   1. Receive a virtual offer to buy or sell an in game item or in        game resource at a specified later date and price, including an        offer amount from a first player character.    -   2. Determine if characters are qualified to enter into specified        contract.    -   3. Receive an acceptance of the virtual offer from a second        player character.    -   4. Receive or retrieve a credit card associated with the first        player.    -   5. Create, activate, and store a virtual offer contract        including the credit card number of the first player character.    -   6. Receive virtual offer amount from second player character        account.    -   7. Transmit virtual offer amount to first player character        account (less transaction fee if applicable).

Virtual contracts may also be entered into for virtual services. Suchservices may include employment, the performance of some duty,assistance with a project, or help with a mission among other types ofservices that can be performed in a virtual environment. For example, afirst character can agree to help a second character to solve a missionor other game parameter with a given time period. If the first characterfails to provide the assistance agreed upon they may be assessed apenalty. Conversely, if the first character fails to pay the secondcharacter when the agreed upon assistance is provided, they may beassessed a penalty. Such a virtual contract may be entered into usingsome or all of the following steps:

-   -   1. Receive, store and output a virtual request for help in        solving a virtual mission from a first player character        including a mission, a date by which the mission must be        complete an amount to pay if the mission is completed and a        penalty for not completing the mission.    -   2. Determine if characters are qualified to enter into specified        contract.    -   3. Receive an acceptance of the virtual request from a second        player character.    -   4. Receive or retrieve a credit card for both player one and        player two.    -   5. Store credit cards with request.    -   6. Make request active.    -   7. Determine if request was fulfilled by specified date.    -   8. If request was fulfilled charge virtual payment amount to        first player character virtual account.        -   a. If first player character virtual account cannot fulfill            payment amount, determine real cash value for virtual            payment amount and charge real cash value to credit card or            insurance policy associated with first player character.    -   9. If request was not fulfilled, retrieve virtual penalty amount        and charge amount to virtual account of second player character        -   a. If virtual account of second player cannot cover virtual            penalty amount, determine real cash value of virtual penalty            and charge real cash value to credit card or insurance            policy associated with second player character.

In some game environments, there may be difficulties in transferringvirtual assets between game environments, or to different locationswithin the same game environment. Characters or other entities maytherefore enter into virtual shipping contracts to have virtual objectsdelivered to certain locations by a particular real or virtual date.Such contracts may be entered into using some or all of the followingsteps:

-   -   1. Receive a virtual item to ship from a first player character        including a present virtual location and a requested virtual        location.    -   2. Determine and output a virtual shipping amount, delivery        date, and real cash penalty amount.    -   3. Receive acceptance of shipping amount and delivery date from        a second player character.    -   4. Receive or retrieve a credit card associated with second        player character.    -   5. Create shipping contract with virtual item, shipping amount        delivery date, penalty amount, and credit card.    -   6. Determine if item was delivered on or before delivery date.    -   7. If item was delivered, charge shipping amount to first player        character account.    -   8. If item was not delivered, retrieve penalty amount.    -   9. Charge penalty amount to credit card.

If a virtual contract is broken or one side does not meet its end of thebargain, a penalty may be assessed. Such a penalty may be financial ornon-financial. For example, the penalty may be forfeiture of thecollateral securing the virtual contract, liquidation of assets, orpayment of a fee. In another embodiment, the defaulting party may haveone or more limitations imposed upon his actions in the virtual world bya) the bank, b) the game manufacturer, c) the owner(s) of the server(s)upon which the game resides, d) one or more player characters, e) anycombination thereof. The penalty may be pre-determined, for example atthe time the virtual contract is formed, may be fixed in that it doesnot change for the duration of the virtual contract, or may be floating.According to one embodiment, the delinquent party may be prevented fromentering into other virtual contracts. In another embodiment, the playerunderlying the defaulting character may be blocked from convertingvirtual currency to real currency. In a further embodiment, a lien maybe imposed upon the assets of the virtual character. In yet anotherembodiment, the game defaulting party may be excluded from transactingbusiness, owning land, voting, projecting in the virtual world, orengaging in other virtual contracts within the virtual world.Additionally, or alternatively, the assets of the securing playersand/or characters may be seized and sold to cover the debt, for exampleby using a program such as asset liquidation and redistribution 114.Assets may be sold one at a time in any order specified by the rules ofthe game server, i.e. most to least valuable, least to most valuable,most to least liquid, least to most liquid, etc. until the virtualobligations of the player characters are met. The proceeds from such asale would then be deposited with the account of the injured party, forexample using Receive Proceeds from Sale of Assets program 122. If thevalue of the assets does not cover the virtual obligations, the cashobtained may be paid in ratio equal to the obligation for each creditorcompared to the total outstanding obligations or in order of priority. Acreditor may be given priority based on when the virtual contract wasestablished, based on the remaining obligation of the contract versusthe total obligation, or priority may be given to third party playercharacters or entities over player characters/entities owned or relatedto the indebted character. For example some or all of the followingsteps may be used:

-   -   1. Determine that a virtual obligation cannot be paid with a        virtual account associated with a player character.    -   2. Determine a real cash value for the virtual obligation.    -   3. Retrieve credit card associated with player character.    -   4. Attempt to charge real cash value of virtual obligation to        credit card.    -   5. If attempt fails, lock virtual assets of player character        account.    -   6. Post and sell virtual assets on appropriate in game        marketplace or exchange.    -   7. Retrieve virtual creditor list.    -   8. Determine percentage of player character asset value due to        each virtual creditor.    -   9. Transmit appropriate percentage of asset value to each        virtual creditor.

If a financial penalty is inappropriate or the contract specifies adifferent type of penalty, some or all of the following steps may beused.

-   -   1. Determine that virtual contract has been or will be breached.    -   2. Impose non-financial penalty on breaching party based on:        -   a. contract terms        -   b. game rules        -   c. agreement from one or more parties to contract        -   d. random determination    -   3. Where non-financial penalty may be:        -   a. preventing breaching party from entering into other            contracts        -   b. exclude breaching party from performing actions in game        -   c. prevent breaching party from converting virtual currency            to real currency        -   d. alter virtual representation of breaching party

The real world credit line used to secure the virtual contract may alsobe charged in real world currency to cover the amount due. In a furtherembodiment, the funds may be automatically debited from the accountguaranteeing the funding. In yet another embodiment, a player can pay arecurring real cash fee to borrow virtual cash in a game environment.The monthly fee can be charged to the player character by the gameserver and a portion of the fee can be remitted, in real or virtual cashto a second player character who initiated the loan.

In another embodiment the virtual representation of the character can bealtered to indicate that the character has violated a contract. Forexample, a character's avatar may be forced to wear a certain item ofclothing, wear or have a symbol associated with the avatar (such as adefaulter sign, black cloud, or other recognizable symbol), state thathe is in default of a virtual contract when speaking to othercharacters, etc.

In a further embodiment, if a payment is missed, any preferential termsmay be subject to change. For example, the interest rate could increase,payment terms could accelerate, guaranteed exchange rates could becomevariable, caps on interest or exchange rates could be removed, etc.

In a further embodiment, the virtual contract could be secured using avirtual credit card. Players or player characters may be offered avirtual credit card when they open an account with the game or with afinancial intermediary.

An exemplary system 200 as shown in FIG. 3 may be configured to providethe environment described above. As shown, system 200 may include a gameserver 202, a bank or other financial intermediary server 204 and acredit card server 206.

Game server 202 may include programs such as credit card upsell 210,credit worthiness program 212, and payment terms 214. Game server 202 myfurther include databases such as player database 218 and playercharacter database 218. Bank server 204 may include an account database220, a player database 224, an interest program 222 and a playercharacter database 226. Credit card server 206 may include programs suchas an exchange rate program 230, a ping credit card program 232, a lockcredit card program 234 and payment options program 236.

In one embodiment, when a player creates an account or creates acharacter, a program such as credit card upsell program 210 may offer avirtual credit card to the player or the character. The virtual creditcard may be used to secure virtual contracts and may or may not belinked to a real world credit line such as a credit card, debit card,private or public payment facilitator account (i.e. paypal), brokerageaccount, equity line, play time card, escrow account, margin account,annuity account or other financial security and/or the financialsecurity of another player character and/or a non-playing third party,such as a bank, credit institution, credit card company, mutual fund,hedge fund, insurance company, etc. or any combination of these or anyother type of real world financial instrument or institution thatprovides a credit line or holds or secures assets for third parties. Inanother embodiment, the virtual credit card may require pre-paymentusing either virtual or real currency and the available credit may equalthe pre-payment amount or some multiple thereof. A determination of thetype of offer to present to a player or character may be based on ananalysis of creditworthiness using credit worthiness program 212. Creditworthiness program 212 could run an analysis of the credit of the playeror character being offered a credit card using a multitude of factorsincluding, but not limited to, types of bills owed by thecharacter/player, the timeliness of payments, loans outstanding, creditlines available, length of credit history, new credit applications,income, marital status, length of time playing the game, real creditscore, character skill level, or any combination of the above. Creditworthiness may be based on real and virtual information available forthe player alone or in combination with the credit score of thecharacter(s) controlled by the player. In a further embodiment, creditworthiness may determine the terms of the credit card such as the graceperiod, the limit and the interest rate.

Information regarding the player may be stored, for example, in playerdatabase 216. Such information may include information such as PlayerID, Billing Info, Personal Info, Character ID 1-n, Credit history,Virtual accounts, Date of account activation. Information regarding thecharacters controlled by the player may be stored in player characterdatabase 218 and may include such information as Character ID, CharacterCredit Score, Character Assets and Attributes, Character Obligations,and Character Skill Level.

Once a virtual credit card is issued, information regarding the accountmay be stored, for example on bank server 204. Such information may bestored, for example in Account database 220. Account database 220 mayinclude information such as account number, Player ID, Character ID,Account number, balance, and terms such as grace period, interest rate,minimum payments, and limits. The interest on a particular account maybe calculated using interest program 222. Interest may be simpleinterest or compounded and may be calculated according to the terms ofthe credit card agreement. Information regarding the players andcharacters holding accounts may be stored in player database 224 andplayer character database 226. In one embodiment, players and/orcharacters may be notified when virtual credit card payments are due. Inanother embodiment, payments may be deducted automatically fromaccounts. In the event that a player or character is delinquent, thereal world credit line securing the virtual credit card may be charged.

Various programs on credit card server 206 may determine the functioningof the credit card. For example, payment of credit card bills may bemade in real currency, virtual currency, or a combination thereof. Ratesof exchange for payment may be determined, for example by exchange rateprogram 230.

According to one embodiment, the exchange rate could be one for one. Inanother embodiment, the exchange rate could be determined when theaccount is opened. Alternatively, the exchange rate may be based on theexchange rate at the time the player's credit card or other credit lineis charged. In a further embodiment, the exchange rate may be determinedat the time payment is due. The exchange rate may be fixed for aparticular segment of the game or ay be pegged to a floating real worldexchange relationship, for example the U.S. dollar/Japanese yen spotexchange rate, a percentage thereof, a plus or minus adjustment thereof,some other economic indicator, or a combination thereof. The exchangerate may also vary depending on the country of origin of the player, ormay be fixed to a particular real world currency, i.e., all exchangerates are quoted in dollars. In another embodiment, the exchange ratemay be floating and determined by market forces such as the relativedemand for virtual currency versus real world currency. Said exchangerates may further be established or determined by any suitable methodincluding, but not limited to, by a) the game manufacturer, b) theowner(s) of the server(s) upon which the game resides, c) one or moreplayer characters, d) market forces, e) negotiation among the affectedparties, f) any combination of the above. The exchange rate may also becomposed of any combination of the above methods. For example, theexchange rate could be fixed for a certain length of time and thenchange to market forces or vice versa. There may also be an introductoryexchange rate that may change after a certain length of time. In oneembodiment, there may be a cap on the amount of fluctuation in theexchange rate for particular accounts.

When payments are due, a variety of payment offers may be made to theplayer or character holding the account. For example, account holdersmay be allowed to pay all or a portion of the balance. Additionally,account holders may be offered “vacations” from payment duringparticular time periods when no payment is due even if a balance is inexistence. In one embodiment, such payment options may be determined byPayment Options program 236.

When a character or player uses the virtual credit card to secure avirtual contract, the availability of credit on the credit card may beverified using Ping Credit Card Program 232. According to oneembodiment, Ping Credit Line program 232 may be configured to completesome or all of the following steps:

-   -   1. Receive notification that virtual credit card has been        submitted to secure virtual contract.    -   2. Determine virtual cash value of contract.    -   3. Ping credit card for the outstanding virtual cash value of        the virtual contract.    -   4. If credit equal to virtual contract amount is not available,        request additional collateral.

In the event a credit line securing the virtual contract is cancelled orclosed, the system could receive notification that the credit card orcredit line is no longer valid. Upon notification that a credit line isno longer valid, the bank, system, game owner, server owner, or othercontract holder may invoke termination provisions or notice of defaultprovisions. For example, the contract holder may require cancellation ofthe virtual contract, acceleration of the virtual contract, require theplayer to provide a new credit line, require additional collateral tosecure the virtual contract, foreclose on the virtual contract, secure asecondary line of credit which was previously provided or may be securedfrom other player characters, notify other characters of the opportunityto purchase a contract, foreclose on virtual assets held by thedefaulting character, freeze the virtual accounts of the character orplayer, or any combination thereof.

In one embodiment, the credit on the virtual credit card securing thecontract may be frozen using lock credit card program 234. Such a lockcould prevent a character or player from over extending themselves andensures that there is available credit to protect the other party to thevirtual contract. The lock on the virtual credit line may be releasedwhen the virtual contract is completed. According to one embodiment,Release Credit Line program 238 may be configured to:

-   -   1. Receive indication that virtual contract or portion of        virtual contract has been completed.    -   2. Retrieve credit card associated with virtual contract.    -   3. Release credit line.

Alternatively, as the virtual contract proceeds or certain milestoneswithin the virtual contract are met, a percentage of the virtual creditline(s) may be released in proportion to or in some other ratio of theamount of the virtual contract completed. In this example, the virtualcredit line held is reduced as the virtual contract proceeds, instead ofwaiting for the entire virtual contract to be completed, thus freeingvirtual credit lines for other purposes. Such a release could be managedby any means available. According to one embodiment, Release Credit Lineprogram 238 may be configured to:

-   -   1. Receive indication that a virtual contract milestone has been        met.    -   2. Retrieve virtual credit card associated with virtual        contract.    -   3. Release portion of credit line.        According to some embodiments, credit card programs such as ping        credit card program 232, lock credit card program 234 and        release credit card program 238 could be layered such that if        the virtual credit card is secured by a real world credit line        and the virtual credit card is used, the real world credit line        could be pinged, locked or released. For example, a ping of the        virtual credit card would trigger a ping of the real world        credit line underlying the virtual credit card.

In another embodiment, virtual credit cards may be offered as part of afinancing option or other virtual contract agreement to secure thevirtual contract. For example, if a purchase of virtual good or serviceis made using credit, the vendor may offer a virtual credit card to thepurchaser to use for purchasing the virtual good or service as shown inFIG. 5. In another embodiment, if an insurance policy is purchased, avirtual credit card may be offered to secure the virtual insurancepolicy. The virtual credit card may be linked to a real credit line andused to secure the purchase or other contracts within the virtual world.The vendor may receive a commission for the acceptance of a virtualcredit card by the purchaser. Such a commission may be a percentage ofthe fees generated by the initial purchase or on all purchases orcontracts secured by that card.

In one embodiment, virtual credit cards, regardless of when acquired,may have reward programs. Player characters that make use of virtualcredit cards may accumulate points based upon their usage and/or paymenthabits. Points may be exchanged for real or virtual objects and/or realor virtual cash. Points may be exchanged for virtual skills, favors,training or education, secrets or secret codes, that, for example,permit entry into a specific area, or solves a puzzle, or provides ahint to solve a puzzle, or provides a “get out of jail free card” or anoption to “go back in time” or to improve a player's strength, orrecovery rate, or to receive part or all of any maps, avatar features orupgrades, lower real or virtual interest rates, and other in game orreal world products, services, devices, and the like. In a furtherembodiment, a card may be issued with a certain amount of credit thatcan be used to secure contracts with no payment obligation for theplayer.

According to some embodiments, the recipient of the reward may need tobe specified by a player. For example, a player may have more than onecharacter that is associated with a specific credit card. In such acase, the player may specify which character should receive the reward.Alternatively, an embodiment may allow a player to designate abeneficiary who is not a character controlled by the player.Specification may take place at the time the reward is received, beforethe reward is awarded, at the time the virtual credit card is obtainedby the player, or at any other suitable time.

An exemplary system 300 as shown in FIG. 4 may be configured to providethe environment described above. As shown, system 300 may include a gameor bank server 302 and a credit card issuer server 304. Game or bankserver 302 may include a credit card upsell program 306. Credit cardissuer server 304 may include a virtual cash reward generation program308. Game or bank server 302 may further comprise multiple databases,such as, for example, a player database 310 and a player accountdatabase 312.

Player Database 310 may comprise information such as Player ID, BillingInfo, Personal Info, and Character ID 1-n. Player Account Database 312may comprise information such as: Player ID, Account Number, Credit LineAvailable, Credit Line Secured, Virtual Cash Payment Percentage forSecured Line, Virtual Cash Payment for Purchases made with Card, RewardConditions, and Transactions 1-n. Credit Card Issuer Server 304 mayinclude a virtual cash reward account database 314, which may includeinformation such as: Account ID, Game Account ID, Reward Conditions, andTransactions n-1. Based on the information in the databases, for examplein the player database 310, a vendor may decide to offer a credit cardto a particular player or the character of a player using a program suchas credit card Upsell program 306. According to one embodiment, creditCard Upsell Program 306 may be configured to:

-   -   1. Receive a player character log in,    -   2. Determine if Player Character qualifies for a credit card        based on personal info, game play behavior, billing info, real        world credit score and/or virtual world credit score.    -   3. Determine a virtual benefit for the player character if he        signs up and/or uses the credit card.    -   4. If player qualifies output credit card upsell including        benefit(s).    -   5. Receive acceptance of upsell offer, including personal        information from player character.    -   6. Transmit personal information to credit card issuer.    -   7. Receive new credit card account information.    -   8. Output information to player character.

Based on the changing information in player account database 302, avendor or virtual credit card company may decide to alter the terms ofthe virtual credit card. For example, the virtual credit line may beincreased or decreased, the virtual interest rate may increase ordecrease, the payment cycle may increase or decrease, and/or the rewardsprogram may change.

According to one embodiment, the rewards program offered by the virtualcredit card may include merchandise, gift certificates, travel rewardsand other goods and services. For example, the reward may be virtualcash. Rewards, such as virtual cash may be calculated using programssuch as Virtual Cash Reward Generation Program 308. Virtual cash rewardgeneration program 308 may be configured to:

-   -   1. Receive card usage activity of a player character from card        issuer.    -   2. Determine virtual cash reward based on conditions and usage        activity.    -   3. Transmit virtual cash reward to player account.        Rewards of other types of assets may have ownership transferred        to a player or character instead of or in addition to the        deposit of virtual cash to a player account.

According to another embodiment, rewards may be convertible to realcurrencies. For example, Virtual Cash Reward Generation Program 308 maybe configured to:

-   -   1. Determine a real cash compensation value for the virtual cash        reward.    -   2. Transmit cash compensation value to credit card issuer for        reimbursement.

According to another embodiment, Virtual Cash Reward Generation Program308 may be configured to:

-   -   1. Retrieve usage of virtual cash reward card over a fixed time        period.    -   2. Generate a virtual reward based on conditions and card usage.    -   3. Retrieve player character account.    -   4. Transmit virtual cash reward to player account.        According to another embodiment, Virtual Cash Reward Generation        Program 308 may be configured to:    -   1. Output card usage activity of a player character to a game        server.    -   2. Receive a real cash compensation value from the game server.    -   3. Transmit the real cash compensation value to the game server.

According to some embodiments, an entity may be limited to the numberand/or value of open, secured contracts in which he may be a party atany given time. The number or value of contracts in which an entity maybe a party may be determined by the type of entity (e.g. is the entity acharacter, group of characters, or server), the virtual or real creditscore of the entity, the amount of collateral available to the entity,past history of the entity (i.e. how long has a particular characterbeen in the game), or other characteristics associated with the entity(age, class, level in game, accumulation of contract points, etc.)

In order to protect themselves, character and game environments mayobtain guarantees such as performance bonds, letters of credit, parentalguarantees, surety bonds, or insurance. In one embodiment, a charactercould purchase insurance to cover his virtual obligations. For example,every time a virtual obligation is established, an interest in aninsurance policy may be purchased for a fee. Alternatively, to avoidrampant cheating in a game, all contracts in the game could beassociated with insurance policies to ensure that wronged parties arenot harmed. In the event of a default, the insurance policy pays thedebt or provides restitution to the harmed party. Furthermore, thebreaching player could be penalized for defaulting. For example, thedefaulting character's virtual credit rating could be lowered, policyrates increased, collateral requirements increased and/or futurerequests for entering into contracts, receiving insurance policies, orreceiving the benefit of an insurance policy rejected outright.Moreover, when an insurance company (real or virtual) pays the debt, theinsurance company may be allowed to seek restitution from the defaultingcharacter.

In another embodiment, insurance may be used to protect virtual assetsand/or to protect against loss if a contract is defaulted upon orotherwise falls apart. A value may be determined for the item beinginsured and a replacement value along with premium payments may becalculated. In the event that a character fails to make insurancepayments, the insurance could lapse regardless of how many premiums havebeen paid. For example, a virtual insurance contract may be configuredusing some or all of the following steps:

-   -   1. Receive, store and output a virtual contract to insure a        particular virtual item from a first player character.    -   2. Receive an offer to accept the contract, including at least        one virtual insurance premium amount from a second player        character.    -   3. Receive an acceptance of the virtual insurance premium amount        from the first player character.    -   4. Retrieve or receive a credit card for both the first and        second player character.    -   5. Activate virtual insurance contract and store credit card        numbers with contract.    -   6. When virtual premium is due, charge premium amount to virtual        account of the first player character.        In one embodiment, if the virtual premium payment cannot be        taken from the virtual account of the first player character,        the real cash value for the virtual premium and charge the real        cash value to the player character's credit card.

In the event a claim is filed, it could be determined whether theinsurance premiums have been paid, and some or all of the followingsteps could be executed:

-   -   1. Receive a virtual claim on a virtual insurance contract from        a first player character.    -   2. Determine if virtual claim is valid.    -   3. If claim is valid, determine a virtual claim value based on        virtual insurance contract.    -   4. Determine a second player character who issued the virtual        insurance contract.    -   5. Output request for virtual payment for virtual claim value to        a second player character.    -   6. If second player character does not pay the virtual payment,        determine a real cash value for the virtual claim value.    -   7. Charge the real cash value to the credit card associated with        the second player character.

In the event of a dispute, contracts could contain an adjudicationclause. The contract could require that it be adjudicated by aparticular third party, in a particular game environment, by aparticular guild, using a particular system, for example, random chanceor any other system described in the contract. Each party may secure thedecision made by the adjudication by providing financial ornon-financial collateral as described above with the penalty determinedby the adjudication being assessed against the collateral of the losingparty. A judgment may be levied using some or all of the followingsteps:

-   -   1. Receive and Store a determination of a virtual settlement        amount to be paid by a first player character to a second player        character including a virtual cash amount and a due date.    -   2. Receive or retrieve a credit card associated with the first        player character.    -   3. Store credit card with determination.        In the event that a character has insufficient virtual assets        for the judgment to be carried out, some or all of the following        steps:    -   2. Retrieve determination on due date.    -   3. Attempt to charge virtual settlement amount to first player        character virtual cash account.    -   4. If first player character virtual cash account can cover        settlement amount, transmit amount (less applicable fees) to        second player character virtual cash account.    -   5. If first player character virtual cash account cannot cover        settlement amount:        -   a. Determine a real cash value for the virtual settlement            amount.        -   b. Charge real cash value to credit card associated with            first player character        -   c. Convert real cash to virtual cash.        -   d. Transfer virtual cash (less applicable fees) to the            virtual cash account of the second player character.

In the event of a default or breach of contract, a warning may be issuedto the breaching character. Such a warning may provide a grace period tocorrect the default or fulfill the obligation. Warnings may be deliveredby any method designed to attract the attention of a player. Forexample, warnings could be given through in game instant messaging, realworld e-mail, voice mail, postal mail, or text messages. For example,some or all of the following steps may be used:

-   -   1. Generate warning message if virtual obligation cannot be met.    -   2. Determine that a virtual obligation cannot be paid with a        virtual account associated with a player character.    -   3. Determine a real cash value for the virtual obligation.    -   4. Retrieve credit card associated with player character.    -   5. Attempt to charge real cash value of virtual obligation to        credit card.    -   6. If attempt fails, output warning message to player character.        If after the warning and expiration of the grace period, the        character fails to fulfill the obligation, the contract could be        sold to a Virtual Collection Agency. A virtual collection entity        may be a virtual business, another player character, virtual        bank, or other lending institution, NPC, or game server, any or        all of which may serve as a collection agency.

The collection agency may pay the contract holder or the injured partyan up front fee and/or percentage of the total outstanding debt or valueof the contract, in exchange for the potential future value of the finalcollected amount or value of the contract upon completion, i.e., adiscount payment or other amount for the “transfer of paper”, and/or mayremit a percentage of the final collected amount to the note holder andretain the balance for its efforts. The collection agency may also takepossession of the liens on any real or virtual property and/or takeactual possession of same and either hold it until the contract ishonored or settled (i.e., akin to a pawn shop) and/or sell the assets torecover part or all of the penalty or value of the contract.

When a player character signs up for a virtual credit card or entersinto any other indebtedness or note, he may also be required by thelender to agree to permit such a transfer of his obligation, whether forcollections on a default or otherwise.

Alternatively or additionally, a holder of a note or other indebtedness,or the injured party in a defaulted contract may sell or assign part orall of such loan, contract or other debt in exchange for a portion orall of such note. In this way, lenders may reduce their risk and/or freeup their credit lines so that they can focus on securing new loans.

FIG. 6 provides a block diagram of an exemplary system 400 suitable foruse with the above-described embodiments. As shown, system 400 includesa game server 402 which may host, for example, a virtual collectionprogram 404. System 400 further includes a bank server 406, which mayhost, for example, a virtual collection program 408.

Game Server 402 may include a plurality of databases including, but notlimited to, a player database 410, a player character database 412, anobligation database 414, a collections agency database 416, anobligation status database 418, and a collections database 420.

Databases may store information regarding the players, the characterscontrolled by the players, the accounts held by the collections agency,the obligations of the characters and/or players, etc. For example, inone embodiment, Player Database 410 may include data such as: Player ID,Player Personal Information, Player Billing Information, Real WorldCredit Score, and Player Characters 1-n. In another embodiment, PlayerCharacter Database 412 may include data such as: Character ID, CharacterCredit Score, Character Assets and Attributes, Character Obligations,Obligation Status. In a further embodiment, Obligation Database 414 mayinclude data such as: Obligation ID, Obligation Descriptor, ObligationTerms and Conditions, and Obligation Penalties. In yet anotherembodiment, Collections Agency Database 416 may include data such as:Collections Agency ID, Collections Agency Descriptor, Collection Types,Penalty Types, and Collection Methods. In a further embodiment,Obligation Status Database 418 may include data such as ObligationStatus ID, Obligation Status Descriptor, and Obligation Status Actions.Collections Database 420 may include data such as: Collection ID,Collection Agency ID, Player Character ID, Penalty Method, andCollection Terms and Conditions.

Additional databases may be found on bank server 406 including, but notlimited to, player character account database 422 and an obligationdatabase 424. Player character account database 422 may include suchinformation as Player Character ID, Account ID, and Obligation ID 1-n.An obligation database may link specific obligations to the charactersthat have the obligation. For example, obligation database 424 mayinclude information such as Obligation ID, Player Character ID,Obligation Penalties, and Obligation Terms and Conditions.

According to one embodiment, contracts and other obligations may bebought and sold. In one embodiment, game server 402 may be configured toset up conditions for obligation transfer at the time the obligation iscreated. Accordingly, game server 402 may be configured to:

-   -   1. Receive an obligation request from a player character.    -   2. Determine conditions for obligation transfer (to a virtual        collection agency).    -   3. Output conditions to the player character.    -   4. Receive acceptance of conditions from the player character.    -   5. Create Obligation for the player character.        If the character defaults on the obligation, it may be        transferred for example to a collection agency. In another        embodiment, the holder of the obligation may sell the obligation        in order to free assets.

In one embodiment, the determination that the obligation is due could bemade automatically. For example using some or all of the followingsteps:

-   -   1. Determine that a virtual obligation payment is due.    -   2. Charge obligation payment to player character account.    -   3. If player character account cannot cover obligation payment,        determine a real cash value of the obligation (including fees        and/or penalties and fines)    -   4. Charge real cash value to player credit card.

In another embodiment, the delinquency of an obligation may be reportedto a third party such as a governing entity, the game, or foradjudication. For example,

-   -   1. Receive a complaint that a first player character could not        pay a second player character a virtual obligation payment.    -   2. Determine if complaint is valid.    -   3. If complaint is valid determine or retrieve a real cash value        of obligation payment.    -   4. Charge real cash value to credit card associated with first        player character.    -   5. Pay second player character the virtual obligation payment        (in real or virtual cash).

In a further embodiment, if a character or player attempts to circumventa contract, for example by hacking the system or breaking the rules,they may be assessed a penalty. The penalty may be assessed using someor all of the following steps:

-   -   1. Determine that a player character has committed an        infraction.    -   2. Determine a penalty amount.    -   3. Retrieve credit card associated with player character.    -   4. Charge credit card penalty amount.

Types of transactions may be limited by the level of participation ofthe player or player character. Such limitations could depend upon theskill, experience, and sophistication of the authorized user and/or theplayer's real or virtual credit score and/or real or virtual current orpredicted income levels. For example, players may advance throughdifferent levels of play and after achieving certain benchmark standardsor having an account established for a particular length of time, theymay be granted wider access to financial intermediaries and the servicesprovided by such intermediaries.

It will be appreciated that while, for the sake of discussion, variousdatabases have been described separately, the data in these and anyother suitable databases could be merged into a single large databasesand/or maintained separately in additional databases, or in otherstructures besides a database. Moreover, any such databases could beindependent or linked, and the data in these databases could be storedcentrally on a server or separately on game devices.

The present disclosure provides numerous systems and methods related tovirtual environments in online computer games. It should be appreciatedthat numerous embodiments are described in detail and that variouscombinations and subcombinations of these embodiments are contemplatedby the present disclosure.

CONCLUSION

Of course it will be appreciated that the systems methods describedherein are provided for the purposes of example only and that none ofthe above systems methods should be interpreted as necessarily requiringany of the disclosed components or steps nor should they be interpretedas necessarily excluding any additional components or steps.Furthermore, it will be understood that while various embodiments aredescribed, such embodiments should not be interpreted as being exclusiveof the inclusion of other embodiments or parts of other embodiments.

The invention is described with reference to several embodiments.However, the invention is not limited to the embodiments disclosed, andthose of ordinary skill in the art will recognize that the invention isreadily applicable to many other diverse embodiments and applications asare reflected in the range of real world financial institutions,instruments and activities. Accordingly, the subject matter of thepresent disclosure includes all novel and nonobvious combinations andsubcombinations of the various systems, methods configurations,embodiments, features, functions, and/or properties disclosed herein.

Where a limitation of a first claim would cover one of a feature as wellas more than one of a feature (e.g., a limitation such as “at least onewidget” covers one widget as well as more than one widget), and where ina second claim that depends on the first claim, the second claim uses adefinite article “the” to refer to the limitation (e.g., “the widget”),this does not imply that the first claim covers only one of the feature,and this does not imply that the second claim covers only one of thefeature (e.g., “the widget” can cover both one widget and more than onewidget).

Each claim in a set of claims has a different scope. Therefore, forexample, where a limitation is explicitly recited in a dependent claim,but not explicitly recited in any claim from which the dependent claimdepends (directly or indirectly), that limitation is not to be read intoany claim from which the dependent claim depends.

When an ordinal number (such as “first”, “second”, “third” and so on) isused as an adjective before a term, that ordinal number is used (unlessexpressly specified otherwise) merely to indicate a particular feature,such as to distinguish that particular feature from another feature thatis described by the same term or by a similar term. For example, a“first widget” may be so named merely to distinguish it from, e.g., a“second widget”. Thus, the mere usage of the ordinal numbers “first” and“second” before the term “widget” does not indicate any otherrelationship between the two widgets, and likewise does not indicate anyother characteristics of either or both widgets. For example, the mereusage of the ordinal numbers “first” and “second” before the term“widget” (1) does not indicate that either widget comes before or afterany other in order or location; (2) does not indicate that either widgetoccurs or acts before or after any other in time; and (3) does notindicate that either widget ranks above or below any other, as inimportance or quality. In addition, the mere usage of ordinal numbersdoes not define a numerical limit to the features identified with theordinal numbers. For example, the mere usage of the ordinal numbers“first” and “second” before the term “widget” does not indicate thatthere must be no more than two widgets.

When a single device or article is described herein, more than onedevice/article (whether or not they cooperate) may alternatively be usedin place of the single device/article that is described. Accordingly,the functionality that is described as being possessed by a device mayalternatively be possessed by more than one device/article (whether ornot they cooperate).

Similarly, where more than one device or article is described herein(whether or not they cooperate), a single device/article mayalternatively be used in place of the more than one device or articlethat is described. For example, a plurality of computer-based devicesmay be substituted with a single computer-based device. Accordingly, thevarious functionality that is described as being possessed by more thanone device or article may alternatively be possessed by a singledevice/article.

The functionality and/or the features of a single device that isdescribed may be alternatively embodied by one or more other deviceswhich are described but are not explicitly described as having suchfunctionality/features. Thus, other embodiments need not include thedescribed device itself, but rather can include the one or more otherdevices which would, in those other embodiments, have suchfunctionality/features.

Numerous embodiments are described in this patent application, and arepresented for illustrative purposes only. The described embodiments arenot, and are not intended to be, limiting in any sense. The presentlydisclosed invention(s) are widely applicable to numerous embodiments, asis readily apparent from the disclosure. One of ordinary skill in theart will recognize that the disclosed invention(s) may be practiced withvarious modifications and alterations, such as structural, logical,software, and electrical modifications. Although particular features ofthe disclosed invention(s) may be described with reference to one ormore particular embodiments and/or drawings, it should be understoodthat such features are not limited to usage in the one or moreparticular embodiments or drawings with reference to which they aredescribed, unless expressly specified otherwise.

The present disclosure is neither a literal description of allembodiments of the invention nor a listing of features of the inventionwhich must be present in all embodiments.

Neither the Title (set forth at the beginning of the first page of thispatent application) nor the Abstract (set forth at the end of thispatent application) is to be taken as limiting in any way as the scopeof the disclosed invention(s). An Abstract has been included in thisapplication merely because an Abstract of not more than 150 words isrequired under 37 C.F.R. §1.72(b).

The title of this patent application and headings of sections providedin this patent application are for convenience only, and are not to betaken as limiting the disclosure in any way.

Devices that are described as in communication with each other need notbe in continuous communication with each other, unless expresslyspecified otherwise. On the contrary, such devices need only transmit toeach other as necessary or desirable, and may actually refrain fromexchanging data most of the time. For example, a machine incommunication with another machine via the Internet may not transmitdata to the other machine for long period of time (e.g. weeks at atime). In addition, devices that are in communication with each othermay communicate directly or indirectly through one or moreintermediaries.

A description of an embodiment with several components or features doesnot imply that all or even any of such components/features are required.On the contrary, a variety of optional components are described toillustrate the wide variety of possible embodiments of the presentinvention(s). Unless otherwise specified explicitly, nocomponent/feature is essential or required.

Although process steps, algorithms or the like may be described in asequential order, such processes may be configured to work in differentorders. In other words, any sequence or order of steps that may beexplicitly described does not necessarily indicate a requirement thatthe steps be performed in that order. On the contrary, the steps ofprocesses described herein may be performed in any order practical.Further, some steps may be performed simultaneously despite beingdescribed or implied as occurring non-simultaneously (e.g., because onestep is described after the other step). Moreover, the illustration of aprocess by its depiction in a drawing does not imply that theillustrated process is exclusive of other variations and modificationsthereto, does not imply that the illustrated process or any of its stepsare necessary to the invention, and does not imply that the illustratedprocess is preferred.

Although a process may be described as including a plurality of steps,that does not imply that all or any of the steps are essential orrequired. Various other embodiments within the scope of the describedinvention(s) include other processes that omit some or all of thedescribed steps. Unless otherwise specified explicitly, no step isessential or required.

Although a product may be described as including a plurality ofcomponents, aspects, qualities, characteristics and/or features, thatdoes not indicate that all of the plurality are essential or required.Various other embodiments within the scope of the described invention(s)include other products that omit some or all of the described plurality.

Unless expressly specified otherwise, an enumerated list of items (whichmay or may not be numbered) does not imply that any or all of the itemsare mutually exclusive. Therefore it is possible, but not necessarilytrue, that something can be considered to be, or fit the definition of,two or more of the items in an enumerated list. Also, an item in theenumerated list can be a subset (a specific type of) of another item inthe enumerated list. For example, the enumerated list “a computer, alaptop, a PDA” does not imply that any or all of the three items of thatlist are mutually exclusive—e.g., an item can be both a laptop and acomputer, and a “laptop” can be a subset of (a specific type of) a“computer”.

Likewise, unless expressly specified otherwise, an enumerated list ofitems (which may or may not be numbered) does not imply that any or allof the items are collectively exhaustive or otherwise comprehensive ofany category. For example, the enumerated list “a computer, a laptop, aPDA” does not imply that any or all of the three items of that list arecomprehensive of any category.

Further, an enumerated listing of items does not imply that the itemsare ordered in any manner according to the order in which they areenumerated.

In a claim, a limitation of the claim which includes the phrase “meansfor” or the phrase “step for” means that 35 U.S.C. §112, paragraph 6,applies to that limitation.

In a claim, a limitation of the claim which does not include the phrase“means for” or the phrase “step for” means that 35 U.S.C. §112,paragraph 6 does not apply to that limitation, regardless of whetherthat limitation recites a function without recitation of structure,material or acts for performing that function. For example, in a claim,the mere use of the phrase “step of” or the phrase “steps of” inreferring to one or more steps of the claim or of another claim does notmean that 35 U.S.C. §112, paragraph 6, applies to that step(s).

With respect to a means or a step for performing a specified function inaccordance with 35 U.S.C. §112, paragraph 6, the correspondingstructure, material or acts described in the specification, andequivalents thereof, may perform additional functions as well as thespecified function.

Computers, processors, computing devices and like products arestructures that can perform a wide variety of functions. Such productscan be operable to perform a specified function by executing one or moreprograms, such as a program stored in a memory device of that product orin a memory device which that product accesses. Unless expresslyspecified otherwise, such a program need not be based on any particularalgorithm, such as any particular algorithm that might be disclosed inthis patent application. It is well known to one of ordinary skill inthe art that a specified function may be implemented via differentalgorithms, and any of a number of different algorithms would be a meredesign choice for carrying out the specified function.

Therefore, with respect to a means or a step for performing a specifiedfunction in accordance with 35 U.S.C. §112, paragraph 6, structurecorresponding to a specified function includes any product programmed toperform the specified function. Such structure includes programmedproducts which perform the function, regardless of whether such productis programmed with (i) a disclosed algorithm for performing thefunction, (ii) an algorithm that is similar to a disclosed algorithm, or(iii) a different algorithm for performing the function.

The present disclosure provides, to one of ordinary skill in the art, anenabling description of several embodiments and/or inventions. Some ofthese embodiments and/or inventions may not be claimed in this patentapplication, but may nevertheless be claimed in one or more continuingapplications that claim the benefit of priority of this patentapplication. Applicants intend to file additional applications to pursuepatents for subject matter that has been disclosed and enabled but notclaimed in this patent application.

1. A method comprising: providing a virtual environment in which virtualentities are able to interact with each other; receiving a request froma first entity to enter into a virtual contract with a second entity;determining a contract value for the contract,; determining if the firstentity is eligible to enter into the virtual contract; determining ifthe first entity is required to secure the virtual contract; receiving afinancial security from the first entity if the first entity is requiredto secure the virtual contract; forming the virtual contract; andstoring terms associated with the virtual contract.
 2. The method ofclaim 1 wherein determining if the first entity is eligible to enterinto the virtual contract comprises determining if the first entity hassufficient collateral to secure the contract.
 3. The method of claim 2wherein determining if the first entity has sufficient collateral tosecure the virtual contract comprises: determining the contract value inreal world funds and receiving information related to a real worldfinancial account and pinging the account to determine if the accounthas sufficient funds to cover the initial contract value.
 4. The methodof claim 3 wherein determining the contract value in real world fundscomprises determining an exchange rate between real world funds andvirtual funds and applying the exchange rate to the contract value. 5.The method of claim 3 where the financial account information is a realworld credit card number.
 6. The method of claim 3 further comprisingperiodically pinging the real world financial account during the term ofthe contract to determine if the first entity has sufficient funds tocover the contract value.
 7. The method of claim 5 further comprisingimposing a penalty on the first entity if the real world financialaccount does not have sufficient funds to cover the contract value. 8.The method of claim 7 wherein imposing a penalty comprises delivering awarning message to the first entity.
 9. The method of claim 7 whereinimposing a penalty comprises preventing the first entity from engagingin an activity in the virtual environment.
 10. The method of claim 6further comprising freezing sufficient funds in the real world financialaccount to cover the contract value.
 11. The method of claim 6 furthercomprising, during the term of the contract, periodically determining acurrent contract value and periodically pinging the real world financialaccount to determine if the first entity has sufficient collateral tocover the current contract value.
 12. The method of claim 3 furthercomprising: determining an initial contract value at the time thecontract is formed; freezing sufficient funds in the real worldfinancial account to cover the initial contract value; and releasingsome of the funds as the contract is completed.
 13. The method of claim1 wherein determining if the first entity is required to secure thecontract comprises determining the virtual financial assets of the firstentity.
 14. The method of claim 13 wherein determining if the firstentity is required to secure the contract comprises determining thefirst entity's virtual credit score.
 15. The method of claim 13 whereindetermining if the first entity is required to secure the contractcomprises determining the first entity's real world credit score. 16.The method of claim 3 further comprising determining when the firstentity has breached the terms of the virtual contract and imposing apenalty on the first entity.
 17. The method of claim 16 wherein imposinga penalty comprises liquidating assets owned by the first entity. 18.The method of claim 16 wherein imposing a penalty comprising alteringthe appearance of the first entity in the virtual environment.
 19. Themethod of claim 16 wherein imposing a penalty comprises charging thecontract value to the financial account.
 20. The method of claim 19further comprising determining if the financial account has sufficientfunds to cover the contract value and, if the financial account does nothave sufficient funds to cover the contract value imposing a penalty onthe first entity.